This archive report was first published on 16 November 2019.
As the economy teeters on the brink of recession, the National Treasury must act with urgency to address the cash crunch. The government's responses to date have been timid and uncoordinated, with a lack of sense of urgency in dealing with the crisis.
According to the National Treasury, cost-cutting measures have been instituted, including a moratorium on foreign travels, capital expenses, communication, and the use of government vehicles. State corporations are also being asked to return unspent cash to the Treasury for reallocation.
However, the problem lies in poor coordination within government. While the National Treasury calls for budget cuts, some ministries and departments are embarking on grand projects that cannot be justified. Similarly, while some ministries and departments are denied funds and pushed to operate on shoe-string budgets, others splash cash on unnecessary expenses.
The opulence and extravagance exhibited by top government officials, including Cabinet secretaries, Speakers, governors, and presidential trips, are a stark contrast to the belt-tightening measures being implemented. The Treasury must give regular updates on the sums of money saved through the cutbacks and audit all capital projects to assess their viability and priority.
Furthermore, the government must tackle corruption, which has emerged as the single greatest threat to the survival of this country. Huge amounts of money are lost through corruption, and the government's aggressive crackdown on corruption has stalled. Acting Treasury Cabinet Secretary Ukur Yatani has his work cut out to save the economy from sliding into recession.
